Why Micro Futures are the Ideal Instrument for Small Account Diversification:
There are several reasons to consider adding Micro Futures trading to your strategy portfolio:
- Smaller margins. Micro Futures contracts are 1/10th the size of a full futures contract. That means margins are 90% lower! This allows you to cover multiple markets with a relatively low account balance.
- Multiple markets. Since the margin requirements are low, you are able to cover several key markets. This reduces overall account risk.
- Non-correlated markets. Prices on stocks, commodities, currencies and interest rates move in different ways. When you trade non-correlated markets, your equity curve is smoother.
- Hedging advantages. Positions in stocks and equity options are subject to losses when the market moves against you. Futures trading provides a hedge against this kind of adverse move.
The CME currently offers Micro Futures on the following markets: Gold (the first Micro)- Silver– ES – NQ-YM-RTY- Euro- Yen plus a few other contracts but the above are the most liquid and better suited for trading at this moment.
First ever Micro Futures Portfolio offered to the general public.
- Opportunity to diversify a traditional portfolio with an alternative investment portfolio for a very reasonable small investment.
- The Micro Portfolio is composed of five different markets and six systems with different logics and time frames. Specifically, there are five day-trading systems (ES, NQ, GC, YM and RTY) and one swing system (NQ).
- Systems are built and tested for robustness by a professional.
- They run on the servers of a regulated broker for the best execution and are in auto-execution.
- Portfolio Minimum. $7,000 – $10,000 to cover the contract size and allow cushion within the account.
- Average Monthly trades could be 30 on average
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